AMERICAN MONETARY INSTITUTE
Tel. 224-805-2200, ami@taconic.net
http://www.monetary.org
PRESS
RELEASE– IMF (International Monetary Fund) Division Chief
Speaks in Chicago.
Dr.
Michael Kumhof, the Deputy Division Chief of the modeling Division,
of the Research Department of the International Monetary Fund of
Washington, DC, will address a monetary reform conference in Chicago
on the results of computerized "modeling" (mathematically
predicting the results) of the Chicago Plan proposal,
which came out of the University of Chicago in
the 1930s to end the Great Depression. Kumhof
applies it to the modern
U.S. financial system. This is the first time that such an exercise
has been done. See:
The
Chicago Plan was designed and promoted by our best economists in the
1930s (Henry Simons, Irving Fisher, Douglas, et al), to get
our nation out of the Great Depression. It would nationalize the
private Federal Reserve System; our money supply would only be
created by the government; and it decisively ended what’s called
“fractional Reserve banking.” It is the model for
Congressman Dennis Kucinich's "NEED Act" (National
Emergency Employment Defense Act), presently introduced in the 112th
Congress as "HR 2990."
Kumhof
presents the results of his study at the 8th annual
American Monetary Institute Conference, at University Center in
Chicago, at 9:30 AM on Friday, September 21st.
The
study concludes that:
“The
Chicago Plan could significantly reduce business cycle volatility
caused by rapid changes in banks’ attitudes towards credit risk, it
would eliminate bank runs, and it would lead to an instantaneous and
large reduction in the levels of both government and private debt. It
would accomplish the latter by making government-issued money, which
represents equity in the commonwealth rather than debt, the central
liquid asset of the economy, while banks concentrate on their
strength, the extension of credit to investment projects that require
monitoring and risk management expertise.…This ability to generate
and live with zero steady state inflation is an important result,
because it answers the somewhat confused claim of opponents of an
exclusive government monopoly on money issuance, namely that such a
monetary system would be highly inflationary. There is nothing in our
theoretical framework to support this claim. And as discussed in
Section II, there is very little in the monetary history of ancient
societies and Western nations to support it either.”
Contact
Person: Stephen Zarlenga, Director, American Monetary Institute,
For
details on the conference see
http://www.monetary.org/2012schedule.html
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